Helloworld Travel Limited has released confirmation this morning that it will be purchasing Excite Holidays’ booking system software from administrators KPMG Australia.
Helloworld said it planned to use the software to “further enhance its existing B2B Ready Rooms business and deliver improved platform functionality for Agents”.
“This acquisition will further develop Helloworld Travel’s business to business technologies in the retail division following on from the successful launch of the company’s proprietary mid-office technology ResWorld in 2019,” Helloworld said in an official statement today.
The 18-year old online wholesaler was placed into voluntary administration last month after a nightmare Christmas period in which Agents realised pre-paid bookings for their clients were not being honoured.
Excite’s administrators KPMG Australia released a report updating creditors on the wholesaler’s collapse on February 10.
The report stated that Excite’s directors believed the Company has become insolvent for a few key reasons
- Excite Holidays’ voluntary removal from ATAS in December 2018, resulting in an immediate and ongoing decline in revenue
- Attempts to sell or recapitalise the business commencing in July 2019 had reached advanced stages with a US-based investor, however, a transaction was not able to be concluded within the timeframe required to sustain operations.
In addition to the Directors’ reasons, the Administrators consider the reasons the Companies failed include:
- Poor financial management of the business during the former CFO’s tenure up to December 2018
- High operating costs in operating a global operation
- High levels of capital expenditure, particularly in relation to the Companies’ proprietary software platform; and – Insufficient working capital
You can read the full report for yourself here. The second meeting of creditors will be held on Monday. More details to follow.